RBC plans to price trigger phoenix autocallables tied to Apple stock

By Marisa Wong

Morgantown, W.Va., May 25 – Royal Bank of Canada plans to price trigger phoenix autocallable notes due June 1, 2018 linked to the common stock of Apple Inc., according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 7.7% to 8.7% if Apple stock closes at or above the coupon barrier price, 80% of the initial price, on the observation date for that quarter.

If the shares close at or above the initial price on any quarterly observation date beginning Nov. 28, 2016, the notes will be called at par of $1,000 plus the contingent coupon.

The payout at maturity will be par plus the contingent coupon, if any, unless Apple shares finish below the 75% trigger price, in which case investors will receive a number of Apple shares equal to $1,000 divided by the initial share price, or at the company’s option, the cash value of those shares.

RBC Capital Markets, LLC is the agent.

The notes will price May 26.

The Cusip number is 78013GBA2.

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